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Draghi: 'No particular limit' to ECB policy tools

The chance of deflation in Europe has subsided due to accommodative central bank policy, which could be adjusted "at any time" to meet goals, European Central Bank President Mario Draghi said Friday.

"Thanks to our monetary policy actions, the risk of deflation in the euro area is firmly off the table," he said in prepared remarks at the Economic Club of New York.

The ECB's easy policy is having its "intended" effects, and the bank sees "no particular limit" to how it can use tools, Draghi said. He added that the central bank would "no doubt" intensify policy like its quantitative easing program, if needed.

"QE is there to stay. If needed, it could be recalibrated," Draghi said in response to a question after the speech.

His comments came a day after the ECB announced it would extend its 60 billion euro ($65.3 billion) a month bond-buying plan to at least March 2017. It previously cut its deposit rate further into negative territory by 10 basis points to -0.3 percent.

Markets had expected a deeper interest rate cut, and the euro soared Thursday after the announcement. In response to a question Friday, Draghi said the package was not "meant to address market expectations."

Mario Draghi
Daniel Roland | AFP | Getty Images
Mario Draghi

He noted that measures of wage growth remain "well below their historical averages." He cited a "great deal of slack" in the labor market despite improvements since the 2013 unemployment peak.

Draghi noted that the ECB cannot do "everything" to meet its goals, and countries may need to implement other structural reforms.

The ECB's policy decision Thursday came as the U.S. Federal Reserve considers its first interest rate hike in nearly a decade. The Labor Department said Friday that the U.S. economy added 211,000 jobs in November, which may not deter the Fed from raising rates later this month.